Norway’s industrial confidence index rises in Q2 2018, Norges Bank likely to hike rates in September

Norwegian industrial sentiment rises in the second quarter; however, the expectations index dropped in the quarter. The survey is consistent with other positive indicators for the manufacturing sector. Industrial confidence continues to be at a high level and is in line with other indicators for the manufacturing sector indicating towards a continued rebound.

Statistics Norway’s Business Tendency Survey showed that the industrial confidence rose to 9.2 in the second quarter from 6.8 in the first quarter. Indices for production, employment and orders all rose. The general outlook indicator dropped 0.3 points to 58.9. However, the level continues to be high in an historical perspective.

The survey underpins that the upturn in Norway’s economy continues and that the Norges Bank is expected to raise interest rates in September, as it hinted in June, stated DNB Markets in a research report.